With over 180,000 potential homebuyers struggling to push their sale through by the September 30, 2010 tax credit deadline, the entire mortgage system has been buckling under the pressure. Luckily, new legislation has been approved that will make everything run a little smoother.

Pushed through the House and Senate earlier this month, the legislation gives homebuyers an additional three months to qualify for the tax incentive and close on their loan. In addition, Congress also approved the National Flood Insurance Program to ensure that buyers in specific flood-prone areas are protected.

For sellers with a pending contract and realtors with a pending sale, the extension is welcome news. Many buyers had put clauses in their contracts that would give them an easy out if they werent able to close before the previous tax credit deadline. Now, there are an extra three months to make it all happen.